Ahead of the Bell: Yahoo upgraded

This image released by NBC shows Yahoo CEO Marissa Mayer appearing on NBC News' "Today" show, Wednesday, Feb. 20, 2013 in New York to introduce the website's redesign. Yahoo is renovating the main entry into its website in an effort to get people to visit more frequently and linger for longer periods of time. The long-awaited makeover of Yahoo.com's home page is the most notable change to the website since the Internet company hired Marissa Mayer as its CEO seven months ago. The new look will start to gradually roll out in the U.S early Wednesday. (AP Photo/NBC Peter Kramer/NBC/NBC NewsWire)

This image released by NBC shows host Savannah Guthrie, left, with Yahoo CEO Marissa Mayer on NBC News' "Today" show, Wednesday, Feb. 20, 2013 in New York as Mayer introduces the website's redesign. Yahoo is renovating the main entry into its website in an effort to get people to visit more frequently and linger for longer periods of time. The long-awaited makeover of Yahoo.com's home page is the most notable change to the website since the Internet company hired Marissa Mayer as its CEO seven months ago. The new look will start to gradually roll out in the U.S early Wednesday. (AP Photo/NBC Peter Kramer/NBC/NBC NewsWire)

This image released by NBC shows Yahoo CEO Marissa Mayer on NBC News' "Today" show, Wednesday, Feb. 20, 2013 in New York to introduce the website's redesign. Yahoo is renovating the main entry into its website in an effort to get people to visit more frequently and linger for longer periods of time. The long-awaited makeover of Yahoo.com's home page is the most notable change to the website since the Internet company hired Marissa Mayer as its CEO seven months ago. The new look will start to gradually roll out in the U.S early Wednesday. (AP Photo/NBC Peter Kramer/NBC/NBC NewsWire)

FILE - In this Friday, Jan. 25, 2013, file photo, Marissa Mayer, CEO of Yahoo!, listens during the 43rd Annual Meeting of the World Economic Forum, in Davos, Switzerland. Yahoo showed more signs of progress during the fourth quarter of 2012m, as the Internet company took advantage of higher ad prices and rising earnings from its international investments to deliver numbers that exceeded analyst forecasts. The results announced Monday, Jan 28, 2013, covered Yahoo's first full quarter under Mayer. (AP Photo/Keystone, Laurent Gillieron)

This Wednesday, Oct. 17, 2012, photo, shows a sign in front of Yahoo! headquarters in Sunnyvale, Calif., Wednesday, Oct. 17, 2012. Yahoo has ushered in Marissa Mayer as its new CEO with a third-quarter earnings report that topped analyst estimates. The results announced Monday Oct. 22, 2012, show Yahoo's net revenue barely grew at a time when advertisers are spending more money marketing their products and services online. Nevertheless, the numbers were slightly better than analysts projected. (AP Photo/Marcio Jose Sanchez)

This Wednesday, Oct. 17, 2012, photo, shows a sign in front of Yahoo! headquarters in Sunnyvale, Calif., Wednesday, Oct. 17, 2012. Yahoo has ushered in Marissa Mayer as its new CEO with a third-quarter earnings report that topped analyst estimates. The results announced Monday Oct. 22, 2012, show Yahoo's net revenue barely grew at a time when advertisers are spending more money marketing their products and services online. Nevertheless, the numbers were slightly better than analysts projected. (AP Photo/Marcio Jose Sanchez)

NEW YORK (AP) — A Cantor Fitzgerald analyst on Tuesday upgraded Yahoo Inc., saying he expects further gains in the Internet company's stock price because of the value of its Asian assets.

Youssef Squali raised his rating for Yahoo to "Buy" from Hold" in a Tuesday client note and increased his price target by $5 to $26, suggesting a 14.5 percent gain from Monday's close. Yahoo shares have already risen 55 percent over the past 12 months. In premarket trading Tuesday, the shares added 20 cents to $22.90.

Over the past four years, Yahoo's revenue has dropped about 30 percent, to $5 billion last year, as rivals such as Google and Facebook scooped up more online advertising. The Sunnyvale, Calif., company hired Marissa Mayer, a well-known Google executive, to revitalize its business last year.

Squali said he doesn't expect any big improvements to the company's core finances soon. But he thinks its operations are stabilizing, a $1.5 billion stock buyback was a boon, the Japanese business is doing well and Yahoo's stake in Chinese Internet company Alibaba may be worth nearly double the $8.1 billion that Yahoo has recently estimated.

Yahoo sold half of its stake in Alibaba last year for $7.6 billion and remains with a 23 percent of the Chinese company.

Squali also predicted that an initial public stock offering for Alibaba could come as soon as next year, although the timing remains "elusive."